Posted 7 months ago on Aug. 15, 2018, 7:24 p.m. EST by agkaiser
(2263)
from Fredericksburg, TX
This content is user submitted and not an official statement

T ≡ total wealth, valued in dollars.

M ≡ total money in existence. Must be no greater than T or it won't be worth it's face value. Well, the way ficticious capital works neo liberal economists would just appreciate the value in dollars of T, wouldn't they? In any case we can ignore M and just deal with the real thing itself.

U ≡ an economic unit. U may be a family, partnership, other close knit group or individual. It cannot be a corporation. Corporations or their stocks and/or bonds are owned by other economic units. [Un].

N ≡ the total count of U. A given U ≡ Un.

W ≡ average wealth: W=T/(NxU).

We will primarily consider T, U, N, W and n in the study of wealth distribution probabilities.

P ≡ net worth of a given U. Axiomatically, ∑ Pn = T.

To be determined:

What % T (or Pn; may be denominated in monitary units) must a Un possess to be considered very wealthy?

What % of NxU can be very wealth if everyone else has P = 0?

We won't consider negative P, [net debt] because to do so would introduce a singularity that would appear, if allowed, to introduce infinite wealth. Of course it wouldn't really be wealth. It would only be money.

I'll leave the conclusion as an exercise for the reader. My readers, if any, are intelligent. You know how this must end.

7 Comments

Mo ≡ Total Money yesterday; C ≡ money created today out of thin air; (C-C) ≡ the actual value of the new money; M=(Mo +C)/(C-C) the singularity strikes. [meant to be illustrative only ... not mathematically rigourous]

The banks collect interest on the fictitious [capitol] money they create on their books and loan to us, as illustrated elsewhere.

Note Seth Frotman, the federal offcial in charge of protecting student borrowers from predatory lending practices, has stepped down. He says the current leadership "has turned its back on young people and their financial futures."Trump only cares about Big Corporate Banks and does not give a crap about US kids!" Read Frotman's resignation letter here:

"Unfortunately, under your leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting," it read. "Instead, you have used the Bureau to serve the wishes of the most powerful financial companies in America."

Bravo.

And, check out the absolutelty disgusting student loan debt statistics in the USA.

"The key policymakers have always maintained they had no choice but to let Lehman collapse. That’s simply not true''!

In fact that - "The average student graduating in 2017 had $39,400 in debt!!!!!'' is ''Simply outrageous & unsustainable'' but the other reality is that there is a secondary market for that outrageous debt - as the debt repayment of accrued & compounded interest is seen as an investment to ''investors'', in the guise of 'innovative financial products'! Indeed .. Selling Debt - is the ENTIRE modus operandi of Wall Street!

This is what happened when Sub-Prime Home Loans & Mortgages - were packaged up together & sold as AAA investment by Banks TO Banks ... who then either sold them on to their customers, and/or kept them on their books as 1st Class Assets and then lent money on them, in order to take further risks. It's simply avarice and gambling but mostly with other people's money.The US Car Loan Industry is another such Ponzi Scheme waiting to go ''POP!'' as hypothicated returns collide w/short & medium term reality!

We won't consider negative P, [net debt] because to do so would introduce a singularity that would appear, if allowed, to introduce infinite wealth. Of course it wouldn't really be wealth. It would only be money.

Mo ≡ Total Money yesterday.

C ≡ money created today out of thin air; (C-C) ≡ the actual value of the new money

M=(Mo +C)/(C-C) the singularity strikes. [meant to be illustrative only ... not mathematically rigourous]

If banks loaned money from savings deposits, infinite money would not be possible. But that's not the case at all. They write the loan checks and record them on their balance sheet. Other banks do the same. The checks are cashed at some bank and marked as a credit there. Got it? A little slow? OK, I'll elaborate. At the end of the day they can borrow from a central bank (which marks that debit) and maintain the required reserves. In the morning the borrowing bank pays back the FED [or other central bank] and marks the debit. Meanwhile all the money created the day before is still out there.

We won't consider negative P, [net debt] because to do so would introduce a singularity that would appear, if allowed, to introduce infinite wealth. Of course it wouldn't really be wealth. It would only be money.